601 4 1
I think this pullback to the base is an ideal time to get started on this trade if you are on the sidelines watching and waiting. The pullback is on decent volume , but a tad less than the rally, which is always nice to see. I would view $12.50 as the 'don't touch' level or stop out. If I did get stopped out at $12.50, I will still be open to revisiting this trade once it turns back up $1.00 or climbs over $15.00. I still believe this sector of the market is under-owned and investors are very shy about buying more to get their position back up to where it is supposed to be. Investors need to "double-up" their positions with mining shares at current levels. Granted, profitability of mines is as issue, but there is never a "green light" flashing to tell you to buy. In life, you have to call your own shots. I hope you can refer to my GG             (Goldcorp) charts to see that I don't always call the mining shares to the upside. When they were flying high, I was careful to point out that they were not very profitable and hence, likely not a very good long term investment. Take a look and let me know what you think. All the best, Tim West 11:41AM EST
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Hi Tim, I wanted to see if you could check in on this stock again. I made money on the way down, then sold some puts which i had to buy shares at about $14, which I then held and waited for the price to come back and am now selling covered calls again. However it looks like we are either at a resistance point or perhaps a breakout point and I just wanted your updated opinion about AU if it has changed. Thanks again.
timwest ct586283
First of all, thank you for your kind comment from 2 months ago! I didn't see the comment until just now but I am overwhelmed with joy. You are very kind to say such nice things. I am happy to take a look again. This sector is really catching on fire and the latest statements of the new Fed Gov Yellen should certainly help gold and mining shares for awhile. The GDX and GDXJ are good "group" charts to follow. I think the group, including AU, will trend strongly for awhile here, but that's just my guess. They are still just coming up from oversold and are deeply "under-allocated" by portfolio managers. I'll see if I can post something later today or tonight. I am headed out the door, so I'll have to check later. Sorry I missed your post from before, TradingView might change the way messages go back and forth so we don't miss any.
Sorry for the lengthy comment but I wanted to say thanks for pointing out this stock and all of your generous analysis. I follow you and appreciate your intelligence and insight into the human nature of stock buying. I saw this chart of yours and decided to buy some shares about two weeks ago because the price does seem to be at a supported bottom and the attraction to me was that it made a great candidate for selling covered calls. I use this calculator at https://www.borntosell.com/portfolio to do a quick percentage check. I noticed there that I could make about 3-5%/month currently on covered calls. For example I bought 600 shares on Oct 30th at about $15.88/share (invested $9,528) and then sold the covered calls at the $16 strike for a total of $407. At the time the calls would expire by Nov 16th. I ended up buying the calls back because of a share price drop so I netted $407 -$188 = $219 or $219/$9,528 = 2.3% for a less than two week span. I mention all this because the December 21st calls are also appealing and if people like the price of AU currently, now is a good time to buy shares and sell calls for December. The risk of course is a major downturn, but again I see this stock at more of a bottom. I would stop out of this at about $11.00 but lately I just keep using the call proceeds to buy more shares to sell more calls. My only other concern is having the stock shoot up quickly and having all my shares called away. However I would still be happy with that and again wanted to say thank you for your great analysis and friendly nature towards other people like myself that are still learning the ups and downs of the charting world. Take care.
+1 Reply
Thanks Tim. Great setup. Here's my view.
+1 Reply
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